Head-To-Head Contrast: Deckers Outdoor (NYSE:DECK) versus American Eagle Outfitters (NYSE:AEO)

Deckers Outdoor (NYSE:DECK) and American Eagle Outfitters (NYSE:AEO) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Deckers Outdoor and American Eagle Outfitters”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$4.99 billion	3.09	$966.09 million	$6.52	15.95
American Eagle Outfitters	$5.33 billion	0.40	$329.38 million	$0.98	12.53

Deckers Outdoor has higher earnings, but lower revenue than American Eagle Outfitters. American Eagle Outfitters is trading at a lower price-to-earnings ratio than Deckers Outdoor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Deckers Outdoor and American Eagle Outfitters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	19.42%	40.49%	26.95%
American Eagle Outfitters	3.73%	13.34%	5.99%

Insider and Institutional Ownership

97.8% of Deckers Outdoor shares are held by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are held by institutional investors. 0.4% of Deckers Outdoor shares are held by insiders. Comparatively, 8.7% of American Eagle Outfitters shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Deckers Outdoor has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Deckers Outdoor and American Eagle Outfitters, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	1	13	9	1	2.42
American Eagle Outfitters	2	10	1	0	1.92

Deckers Outdoor currently has a consensus target price of $137.50, indicating a potential upside of 32.20%. American Eagle Outfitters has a consensus target price of $14.70, indicating a potential upside of 19.75%. Given Deckers Outdoor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Deckers Outdoor is more favorable than American Eagle Outfitters.

Summary

Deckers Outdoor beats American Eagle Outfitters on 12 of the 15 factors compared between the two stocks.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.

About American Eagle Outfitters

American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.